Fuel retailer and distributor Top Line Business Development Corp. has priced its initial public offering (IPO) at P0.31 per share, aiming to generate P733.1 million from 2.36 billion shares up for sale.
The price indicates a P0.07 discount per share, or 18.42 percent off the maximum indicative price of P0.38 per share.
“The final offer price takes into account current market conditions while still ensuring that Top Line can pursue its strategic initiatives, including establishing new fuel stations and expanding its logistics capabilities with additional fuel trucks and tankers with its net proceeds. We are also very pleased with the strong coverage of our books at this offer price and believe it presents significant upside potential for prospective investors,” Top Line said in a statement.
Visayan-based Top Line is offering 2.15 billion primary shares for its IPO, with a separte 214.84 million secondary shares for its greenshoe option.
The option grants the underwriter the right to sell more shares than originally planned if the demand for a security issue proves higher than expected. It is also called an over-allotment option.
This means the investing public will own 22 percent of the company post-IPO.
Investment and Capital Corporation of the Philippines and PNB Capital Corp. were hired as joint lead underwriters and bookrunners.
The offering will run from March 24 to 31, with April 8, 2025 as the listing date on the Philippine Stock Exchange.
Erik Lim, Top Line chairman, earlier said the company was looking at a strategic investor for the fund-raising activity.
In particular, P300 ᵐillion of the proceeds will fund the construction of additional 20 service stations under the Light Fuels brand, with 10 set to operate this year and another 10 in 2026.
An estimated P180 million will also be used to acquire a five million liter fuel tanker to enhance Top Line’s fuel storage capabilities and ensure a reliable supply chain.
“A portion of the net proceeds will also be allotted to working capital requirements for the fuel stock sourced from local and foreign suppliers. The rest of the proceeds will be used for general corporate purposes,” Top Line said.
The company intends to establish its retail fuel distribution network through Light Fuels, catering to underserved niches within Central Visayas. It operates four Light Fuels stations, while six others are in different stages of construction and development that will be in operation within the first quarter of the year. This is on top of the 10 that will be funded by the IPO proceeds.
Top Line closed the first nine months of 2024 with a profit of P90.5 million, a record and 157 percent up from the prior year’s P35.2 million. Sales rose 9.09 percent to P2.4 billion from P2.2 billion in 2023.
